Government of Meghalaya

Budget Speech 1972 – 73
By

Shri Brington Buhai Lyngdoh

Finance Minister, Meghalaya

19th June, 1972

Mr. Speaker Sir,

The Year 1972 is
the most notable year for the people of Meghalaya and for the people of
the North Eastern Region as a whole. On the 21st January of this year,
our great Prime Minister inaugurated the full fledged State of
Meghalaya. This day, the 21st January, 1972 will ever
remain the most memorable date for the people of our State, for it marks
the complete fulfillment of the aspirations of the people for a
rightful place in the life of the nation. In this connection, I would
like to acknowledge with gratefulness the deep understanding shown by
our Prime Minister and the other national leaders of the problems and
aspirations of the people in this part of the country, I
would also like to put on record our appreciation of the abundant
good-will that came to us from the people of the country as a whole and
of Assam in particular. I am sure this august House will join me in
extending our best wishes and continued good-will to the people of Assam
and the North-East with a pledge to march hand-in-hand in ensuring a
balanced and accelerated development of the region as a whole. The
emergence of Meghalaya as a full fledged State has thrown a challenge
and has put upon us the gigantic responsibilities to initiate and
implement the programmes for al round development of this
under-developed part of the country. Our objectives is not only to bring
the level of development of the State at par with other advanced 'States
of the great Republic to which we are privileged to belong, but also to
keep up with the tempo of development in the rest of the country. I
would solicit the co-operation of all the members and the people
of Meghalaya towards putting in maximum efforts to realise this goal.

Mr.
Speaker, Sir, in the world of to-day political developments in one
country cast their inescapable shadows on the others. And in the case of
Meghalaya, political developments in the erstwhile East Pakistan did and
will have profound effect upon our social and economic life. With
influx of refugees in an almost unparalleled manner in the history of
the world and its consequent repercussions, the economy of this poor
State of ours was put to a severe strain. A challenge like this was
perhaps not faced by any other State during the initial years of its
life. I will not be accused of undue self-praise if I submit to this
august House that this challenge was adequately met by the new born
State of ours. The administration stood up as one man during those
critical days in our history to the best extent possible and delivered
the goods. It is a tribute to the administration as well as to the
people who displayed unexpected endurance and a lasting faith in
the values which we traditionally cherish. Looking back now, it is
indeed heartening to note that the seemingly endless night of autocratic
tyranny on the teeming millions of the erstwhile East Pakistan came to
an end with the help of our valiant Army. The sun of freedom rose in the
eastern horizon for this unfortunate group of our neighbors across the
border and ultimately there emerged the Sovereign Democratic Republic of
Bangladesh. Ours was the first country to recognise this youngest nation
of the world as a sovereign country and almost the entire comity of
nations followed suit in no time. We hope that our vital border trade
which got such a rude jolt after the partition of the country
twenty-five years ago will again be normalised, thereby giving
sustenance to our hard hit border people in particular and to the
overall economy of the State in general

Meghalaya Contribution during war with
Pakistan.

I may also be
permitted to refer to our humble contribution to the war efforts of the
nation against the ruthless attack of Pakistan. Soon after the
declaration of war by Pakistan in December, 1971, a Citizens' Council
was was formed in our State with the Chief Minister as its Chairman.
Branches of this Council were constituted in all the Districts and
subdivisions of the State. The Citizens' Council directed popular
efforts in promoting the welfare of the fighting forces and attempted to
ensure maximum participation of the common man in the national war
effort. Donations were collected for the National Defence Fund to
augment Government's resources in fighting the war. A campaign was
launched to enroll blood donors and the response was overwhelming.
Gift articles were collected for the armed forces and a sum of
Rs.1,06.949.60 p. was presented to the Prime Minister on the day she
inaugurated Meghalaya as a full-fledged State.

Additional Resource Mobilisation for
Bangladesh refugees.

The Government of
India introduced certain legislative measures aimed at mobilising
additional resources for providing relief to the ten million refugees
from Bangladesh. In line with the other States of the country and in
pursuance of the instructions from the Government of India, various
measures were taken by this Government to raise additional revenue in
aid of refugee relief. Our efforts in this line are still continuing and
during the current session I may have the privilege to move certain
bills in this House with that end in view. The war has brought home to
us the paramount need for attaining economic self-reliance even if it
involves some additional hardship and sacrifice. I would not like here
to repeat the traditional Finance Minister's invocation to tighten the
belts, but I will be failing in my duty if I do not take this
opportunity to emphasize the need for observing economy and discipline
and to put in hard work to increase production in every field.

As in the rest of the country the Government of
Meghalaya adopted various measures for the welfare of the officers and
men in the Army, Navy, Air Force and Para-Military Forces which were
killed or disabled in action during the recent operations against
Pakistan. These concessions have been extended to the Army, Navy,
Air Force, and B.S.F. Personnel, who are or were permanent residents of
Meghalaya.

Review of Economic Situation

I would now like to mention
briefly some of the broad trends in the Nation's economy which have a
bearing on the economy of our State. The year 1971-72 was one of
the most difficult years which the country has faced since independence,
mainly because of the influx of Bangladesh refugees and the war with
Pakistan. As a result, plan targets fell short. Industrial
production in the organised sector during the year may not grow by more
than 4 percent. The rise in the first 8 months of 1971 was only 2
percent as compared with 5.5. percent during the corresponding period of
the previous year. Agriculture, on the other hand, showed a satisfactory
rate of growth in the country.

Price Situation

Average price rise in
the calendar year 1971 was 3.9 percent as compared with a 6.2 percent
rise in the previous year. At the end of January, 1971 , the price level
was 4.1 percent higher than at the same time a year ago. It is
inevitable that the impact of the war will continue to be felt on the
price situation and on the economy of the country.

National Income.

According to the estimates of the Central
Statistical Organisation, the National Income of the country increased
by 5.3 percent during 1969-70 as against 2.4 percent during 1968-69.
This rate is marginally lower than the average annual rate of growth as
envisaged in the 4th plan. This rate of growth was also not commensurate
with the rate of growth of population. During 1970-71, the National
Income according to a tentative estimate showed an increase of 5 percent
to 5.5. percent over 1969-70. The per capita income during 1969-70 in
terms of 1960-61 prices was estimated at Rs.339.40 p. as against
Rs.329.90 p. in the previous year. At current prices the per
capita income was put at Rs.589.30 p. during 1969-70. This encouraging
trend in the National income is due mainly to the consistent progress in
agricultural production which registered a steady rate of growth. During
1971-72 the output of foodgrains in the country was expected to increase
by about 4 percent or 4 to 5 million tonnes over the level
attained in the previous year and to reach the figure of 112 million
tonnes.

Meghalaya in All-India context.

The machinery for
collection of data regarding State income and per capita income in
Meghalaya is being built up. While I am not in a position to give
accurate figures relating to the per capita income in Meghalaya yet it
is well-known that we are extremely backward and much remains to
be done in the agricultural as well as industrial sector to bring
Meghalaya at par with other advanced States in the country. The number
of factory workers per lakh of population in Meghalaya was only 161 as
against the All-India average of 1071 and the Assam average of 616. The
Government of India have declared the whole State as industrially
backward and have applied the scheme for incentives for industrial
development to all the districts of the State.

We have excellent
hydro electric power potential and yet the per capital consumption
electricity here is one of the lowest in the country.

Nature has been
bountiful to us with regard to mineral resources which are still to be
fully surveyed and utilised. The setback of the early sixties is still
having its effect on our local coal mining industry. In case of
Silimanite also the performance has not been very satisfactory. Only
limestone production has registered some improvement.

Agricultural Production

Cultivation over
a large area is still on the shifting pattern thus leading to waste. Low
inputs and lack of improved agricultural practices have combined to make
the overall agricultural yield disappointingly low. Still in
1970-71 there has been a marginal increase in production of foodgrains
over that of 1969-70. Production of jute and mesta is expected to
register a slight increase this year as against 1970-71. Potato output
is expected to be better during 1971-72, exact statistics on which
are still being collected. Recently a special scheme has bee prepared to
take up a programme for settling those engaged in jhumming by
reclaiming land, terracing, development of irrigation facilities etc.
The scheme has been submitted to the Government of India for sanctioning
of necessary funds.

The other main crops
of the State are oranges, arecanut, betel leaf, pine apple, bananas,
etc.

Border Transport subsidy for essential
commodities

As we are to import to
of the essential commodities from other States, spikes of these articles
are always higher in Meghalaya than in the neighboring States. The
problem of transportation is very much there and mores so in the border
areas where a transport subsidy scheme had to be adopted to provide some
relief to the border people.

Problem of Unemployment

With the fast
increase in the number of educated youths, the problem of educated and
semi-educated un-employment has raised its head in our State also. It is
expected that employment potential would be created through
development programme like soil conservation, road construction,
small-scale industries, rural works health and education programmes
though this problem calls for sustained efforts over a number of years.

Fourth Plan and the Annual Plan 1972-73.

When Meghalaya was created
as an autonomous State the outlay for its Fourth Plan was fixed at
Rs.38 crores by taking out a share of the Assam Hill Plan outlay. Now
that Meghalaya has become a full State, it has to get a share of the
outlay of the general Plan of the Assam State also. The Fourth
Plan of Assam before the division comprised of the general Plan and the
Plan for the Hill areas. Out of the general outlay of Rs.225.50 crores
for the Fourth Plan for Assam Rs.65 crores was meant for the Hill Plan
and Rs.160.50 crores for the general Plan. Subsequently, on a
reappraisal of the resources, the State Plan was raised to
Rs.236.75 crores and the Hill Plan was raised to Rs.65.75 crores. The
Hill Plan consisted only of District Level schemes for all the
districts of composite Assam and some outlays common to all the hill
districts. The State level schemes were included in the general Plan. At
the time of allocation of the Plan outlays to Meghalaya, only the
Hill Plan outlay was divided as between Meghalaya and the Hill Areas of
the rest of Assam. On the whole, Meghalaya could get only Rs.38 crores
for the 5 year period which was inclusive of the Plan expenditure during
1969-70, the year in which Meghalaya had not become an autonomous State.
The outlays for the Plan of Meghalaya drawn on this basis were extremely
inadequate and left no scope for expenditure on the State level Schemes.
In addition, the Shillong Municipal and Cantonment areas have been
transferred to Meghalaya Government with effect from 21st January 1972
on coming into force of the North -Eastern Areas (Re- organisation) Act,
1971. The responsibility of continuing the development schemes
undertaken by the Government of Assam in these areas has developed
upon the Government of Meghalaya without any corresponding
increase in the Plan outlays. It would, therefore, appear that the
original Fourth Plan allocation for Meghalaya did not take into account
the implementation and continuation of such schemes in these areas at
the time of division of the Hill Plan outlay of Assam between
Meghalaya and the Hill District of the rest of Assam.

This
question has, therefore been taken up with the Planning commission and
the Government of India. We look forward to a sympathetic consideration
of our request by the Government of India, as a result of
which it is hoped that the size of the State fourth Plan may go up
to a certain extent, making implementation of bigger programmes possible
in the remaining two years of the Fourth Plan.

The
First Annual Plan of Meghalaya, i.e., for the year 1970-71,
provided for an outlay of Rs.7.25 crores for the State sector programmes
and the implementation started only from September, 1970. Against this
outlay of Rs.7.25 crores, expenditure amounted to Rs.7.65 crores.

The
Plan outlay for the Annual Plan 1971-72 was fixed at Rs.7.95 crores.
According to provisional estimates the entire outlay was spent during
the year. For the year 1972-73, the Plan outlay has been fixed at
Rs.8.25 crores. This includes Rs.7.22 crores as central assistance. The
balance amount of Rs.1.03 crores is to be raised by loans from the Life
Insurance Corporation of India, open market loans by the State
Government etc. In addition there is a provision for undertaking
a special employment programme to the extent of Rupees ten lakhs. As
against the accepted procedure of the Central Government giving
grant on condition that the State Government gives cent percent matching
grant, we have requested the Government of India to waive this
requirement of giving matching grant by the State due to our meagre
resources and to give us the entire amount of Rupees ten lakhs by way of
Central assistance.

Plan priorities.

As the
development programme of Meghalaya depend, to a large extent, upon a
good communications system, high priority has been given in the Annual
Plan to the road development programmes. Priority has also been
given to agriculture and allied programmes. in the field of Industrial
development, emphasis is being placed on the building up of
infrastructure and other prerequisites and quickly as possible so that
development and economic utilisation of the natural resources of the
State can be taken up. In the sphere of social services, increased
facilities for general and technical education, medical, public health
services, residential housing and water supply have been provided for.
Provision has also been made for accelerated development of
border areas, Besides, the District Councils with continue to receive
assistance from the Government for financing their own Plans.

Special Development Programme.

Certain special development
programmes have been drawn up outside the Plan and submitted to the
Government of India. These special programmes relate to regrouping of
villages in Garo Hills, road projects of strategic and economic
importance, Shillong Water Supply Scheme, development of Shillong, Tura
and Jowai towns and rehabilitation of border economy. The State
Government have set up a Working Group to go into the details of the
project for re-grouping of villages in Garo Hills as required by
the Planning Commission. For rehabilitation of the border area economy,
an integrated scheme is being drawn up. The project report for the
Shillong Water Supply Scheme has been prepared and submitted to the
Government of India for the purpose of arranging funds for the project.

Agriculture

The main
objectives underlying the Agricultural Plan have been the creation of
conditions conducive to higher growth rate in agricultural production by
popularizing improved and scientific methods of cultivation amongst the
farmers and building up the infrastructure to support these programmes.
The expenditure on agricultural programmes including minor irrigation
warehousing, storage and marketing rose from Rs.50.81 lakhs in 1969-70
to Rs.69.40 lakhs during the year 1970-71. In the field of agriculture
including minor irrigation, the developmental activities started
in the past were being continued and the allocation in the State Plan
has also increased from Rs.67 lakhs for the year 1971-72 to Rs.90.00
lakhs for the year 1972-73. Out of the current year's allocation
Rs.65.00 lakhs have been provided for schemes under agricultural
production, land reforms, research education and training and the
balance amount of Rs.25.00 lakhs has been earmarked for minor irrigation
schemes. In addition, the Agriculture Department is implementing
programmes to the extent of Rs.5.10 lakhs under border Areas
Programmes. The total anticipated production of food-grains during the
year 1971-72 was 145,000 tonnes as against the production of 123,700
tonnes in 1970-71.

Small Farmers Development Agencies and
Marginal Farmers and Agricultural Labourers Schemes.

The projects for the
benefit of small and marginal farmers and agricultural labourers were
sanctioned by the Government of India in September, 1971 each entailing
a total outlay of Rs.100 lakhs. These projects known as the Small
Farmers, Marginal Farmers and Agricultural Labourers Development
Agencies were registered under the Registration of Societies. Act, 1860,
during the month of November, 1971. These are credit-oriented project
which will arrange loans from co-operative and commercial banks
for the small and marginal farmers and support these loans by way of
adequate in-put subsidies in the field of agriculture, animal husbandry
and rural artisanry. For the agricultural labourers there are schemes to
provide them with subsidiary occupations like dairy and poultry etc. It
is expected that both the Agencies together will benefit a total number
of 30.000 small and marginal farmers and 10,000 agricultural labourers
within the Fourth Plan period by arranging purposeful programme aimed at
substantial increase in the income. The Agency with headquarters at
Shillong has taken up 3 blocks viz., Bhoi, Mawryngkneng and Thadlaskein
and the second Agency with headquarters at Tura has taken up these
programmes in Rongjeng and Resubelpara blocks. These activities
may be also be extended to other blocks.

Projects with foreign collaboration

In my last Budget Speech, I
had mentioned about the Government of India's proposal to locate a
Special Area Development Project for agricultural development with
Norwegian collaboration. This project is still being processed by the
Government of India and it is expected that his project and the schemes
under 'Freedom from Hunger Programme' with financial assistance from the
Government of Japan will be approved during the current financial year.

Special Project for Control of Jhumming.

Studies have already
been made in consultation with the Government of India for a special
project for improving the way of life and methods of agriculture of the
jhum cultivators in the State. It is expected that this project will
also make some headway during the current year.

Training

As the hon'ble members
are aware, there is a great dearth of trained technical personnel and
subject matter specialists in the Development Departments. The
Government have already taken steps to depute officers for training in
the other parts of the Country and abroad. One officer was sent to
Australia and another to Scotland last year and one officer has been
sent to England this year for the purpose of training.

Production of Potato etc.

There has been a
marked increase in potato production after the introduction of
disease-resistant varieties like SLB-67. SLB-391 and SLB -848.
Another new variety of potato, namely , Kufri-Joyti, has also been
recently introduced in Meghalaya. This variety has been brought from
Himachal Pradesh and can be raised twice in a year.

As it is
essential to provide research support to all the agricultural programmes,
specially those connected with improved and high-yielding
varieties of crops, the Government has drawn up a detailed
programme to establish laboratories and soil-testing stations and to
conduct surveys and investigations required for the purpose. The
Government of India have sanctioned one mobile soil-testing laboratory.
The Agriculture Department have also taken up experimental sub-soil
mulching programme which utilizes the base of jungle weeds and jungle
growths prevailing during the monsoon for conversion into good
organic manure aimed at increased fertility of the soil.

Horticulture

Horticulture in this State
is an important field of farming activity. Besides the creation of a
separate Horticulture Wing in the Directorate of Agriculture, a scheme
has also been drawn up for strengthening the research base in this
direction. There is a proposal to set up a full-fledged Research Station
on a temperate fruits with financial assistance from the Government of
India, and another scheme for the rehabilitation of citrus cultivation
in Meghalaya is proposed to be taken up. The Government of India have
also proposed an intensive horticultural development programme on
watershed basis which is being processed by the Agriculture Department.
It may not be out of place to mention here that we participated in
the All-India Pineapple Show organised by the Government of India at
Gauhati during August, 1971, and we not only won a large number of
prizes but also were awarded the All-India Shield.

An officer was also deputed
for training in artificial cultivation of mushroom at Solan in
Himachal Pradesh. It is proposed to start an experimental mushroom
cultivation station in this State very soon.

Supply of Agricultural Machineries.

One of the encouraging
features in the field of agriculture in our State has been a general
awareness among the farmers in the rural areas about the tremendous
potentialities, scope and the vast range of benefits accruing from
scientific mechanised cultivation, harnessing and application of water
to crops and processing and scientific warehousing of the products.
During the last year there was an unprecedented demand from rural areas
for tractors and bulldozers for land reclamation and land development
works. In order to cater to these needs of the farmers, the Department
of Agriculture have started an Agricultural Engineering Wing which is
further sub-divided into four separate cells each dealing with
agricultural machinery, minor irrigation engineering research and
construction works respectively.

Animal Husbandry

All the programmes of Animal
Husbandry and Veterinary Department are aimed at increased production of
milk, eggs and meat. While there has been a substantial increase in the
production of eggs and milk in the State, the piggery development
programme has not made such impact as the programme initially based on
propagation of Yorkshire breed was not preferred by the people of
the State. Efforts are now being made to introduce the Saddle-back
and Berkshire breeds of pigs and it is expected that the programme will
gain momentum by the end of the current financial year. The
Government of India have agreed to the recommendations of the Danish
experts for establishment of one Indo-Danish Project at Upper Shillong
which will re-organise the Upper Shillong Livestock Farm, impart
training to local farmers in the modern methods of management and
rearing of animals, and breed of good cows from the basic stock of
30 Friesian cows and 3 Friesian Bulls which will be given by the
Government of Denmark. An Intensive Cattle Development Programme has
also been taken up. Establishment of Stockman Centres and Semen Banks
has been started and it is expected that about 20,000 cows will be
covered by the artificial insemination programme. In this connection,
one key village block has been established and it is proposed to
establish more such centres during the current year. Distribution of
improved breeds of sheep and goats has also been taken up to popularise
rearing of these animals.

For
veterinary aids and control of animal diseases, 2 veterinary
dispensaries and 4 Veterinary aid centres have been established and 2
additional mobile veterinary dispensaries have been commissioned. The
mobile units will be used for giving veterinary aids in the border
areas. A training programme has also been taken up and number of
students have been deputed for training as Veterinary Field
Assistant and Graduates in Veterinary science. Meanwhile, a farmers'
training programme in poultry has also been continuing successfully.
District and Sub divisional Offices have also been strengthened
though we continue to feel the wide gaps in the staffing pattern due to
non-availability of technical personnel.

The town milk supply
scheme and the milk chilling plant in Nayabunglow have been operating
satisfactorily, and there is a proposal to establish a bottling and
pasteurization plant at a strategic place. It is also proposed to
establish a creamery and ghee making plant in Garo Hills.

Fisheries.

There is a great
scope for fishery development in the State and there is a provision of
Rs.20 lakhs for fisher development during the 4th Five Year Plan period.
The development schemes include fish seed farms, financial assistance to
pisciculturist, development of reservoir fisheries, conservation and
protection of river fisheries, strengthening of the administrative and
supervisory machinery, and training and research. Besides this,
the fisher development programmes are also being taken up
under the Applied Nutrition Programme in the border areas with an
additional outlay of Rs.0.15 lakhs. A provision of Rs.1.50.400
has been made in the current year's budget and this amount will be
spent in running the normal administration and maintaining schemes which
were completed before the commencement of the 4th Plan. The target of
fish production as approved by the Planning Commission is 300 tonnes for
Meghalaya for the year 1972-73.

Co-operation

The State Government
have taken steps to streamline and ensure healthy growth of co-operative
societies in the urban as well as the rural areas. Loans for
agricultural purposes given by co-operative societies have registered an
increase in their quantum and this is a sure indication that the
co-operative societies in the State are gaining ground. During the year
1971-72, however no new sub-area marketing societies and other
co-operative societies were organised with a view to strengthen the
financial base of the existing societies. This was done by way of
assistance in the shape of share capital contribution managerial
subsidy, loan and subsidy for construction of godowns. The results have
been encouraging. The Meghalaya Co-operative Apex Bank was given a
share capital contribution of Rs.5 lakhs and a managerial subsidy of
Rs.1.50 lakhs in order to take-up agricultural loaning operations and
the Hill Development Corporation was given a share capital
contribution of Rs.1.99 lakhs for organising procurement and
distribution of fertilisers. The approved outlay for the year 1972-73 is
Rs.27 lakhs and it is expected that this amount will be sufficient to
put the already existing co-operatives on a more stable footing.

Soil Conservation

With the continuance of jhum
cultivation and wastage of land resources, the Soil Conservation
Department and its activities have assumed vital importance. Re-organisation
of the Ranges and Beats in all the districts of the State was taken up
during the last year and it is proposed to continue the process this
year. Besides, the Department also proposes to take up terracing.
Contour bounding and land reclamation on an extensive scale supported,
whatever necessary, by follow-up programmes of supply of improved seeds,
fertilisers and irrigation facilities. An afforestation programme to
conserve the watersheds and catchments areas is also being taken up.
People who cannot take up terracing on hills where the gradient is
unsuitable for the purpose will be assisted in the cultivation of cash
crops and horticultural crops. The total outlay for Soil Conservation in
the Annual Plan for the year 1972-73. is Rs.25.00 lakhs.

Community Development

During the current year we
have a total number of 24 Blocks in the State, out of which 10 Blocks
are in the Stage II and 14 Blocks in Post-Stage II. An amount of Rs.20
lakhs has been provided under the State Plan and Rs.27.60 lakhs in
the normal budget for implementing the Community Development
Programmes. The number of Tribal Development Blocks in this State
is 16 in Stage been provided for the Tribal Development Blocks by
the II and 7 in Stage III and an amount of Rs.32 lakhs has
Government of India.

To meet the problem of
malnutrition in the villages, a special programme called Applied
Nutrition Programme was taken up during the last financial year in
collaboration with the UNICEF, FAO and WHO. Although the programme
involves the agriculture, horticulture poultry, fishery, medical
and health and education departments the responsibility for co-organising
the programme has been entrusted to the Community Development
Department. During the year 1972-73 the programme will be taken up in 5
Blocks with a provision of Rs.1.70 lakhs under Central assistance and
Rs.1.35 lakhs out of Community Development budget.

Another
programme, known as the Special Nutrition Programme was also started
with a view to provide supplementary nutrition to the younger group of
children belonging to the weaker section of the community in the slum
and tribal areas in order to counteract the serious effects of
malnutrition amongst them. An amount of Rs.1.88 lakhs was spent under
this programme during the last year and an amount of Rs.2.84 lakhs
is proposed to be spent during the current year. One crash scheme for
rural employment was taken up with an outlay of Rs.25 lakhs during the
year 1971-72. this scheme has been implemented in all the Blocks with a
view to generating employment amongst the weakest sections of rural
communities. The scheme will continue during the year 1972-73 and the
Government of India has already been apprised of our requirement of
funds which may be of the same pattern as last year.

The Pilot
Research Project in Growth Centres was also started during the last
financial year to locate potential growth centres. The Project is
basically concerned with development of methodology for planning and
development of Rural Growth Centres in the country. The term of the
project is of five years duration and it will continue during the
current financial year.

Besides the aforementioned activities of the Community Development
Department, the Blocks have also been consistently busy with the
extension work of agriculture and other Departments. It must, of course,
be said that during the last financial year most of the officers in the
Blocks were engaged in the refugee relief operations which hampered the implementation
of the Community Development Programme and the entire work
of the year had almost to be done within the last few months of the
financial year.

Forest

Forest
constitute a very important natural resource of the State and
their proper management is of utmost importance for the economy of
Meghalaya. Ways and means for proper management of forests with
the co-operation of the District Councils are being studied. During the
last year emphasis was placed on raising of valuable trees like Teak and
medicinal plants like Ipecac supported by organisation of forest
research and protection measures. The process will continue during the
current year and the plan outlay for forests is Rs.20.00 lakhs. It is
also expected that the revenue from forest will go up by about
Rs.2 lakhs during the current year.

Revenue and Agricultural Credit.

In is common knowledge
that the land tenure system in Meghalaya is generally of a nature which
had created difficulties in mortgaging of land by the agriculturists in
the State. The State government have been examining for quite some time
in consultation with the District Councils the possibility of
working out a system whereby agricultural credit can be expended
to our agriculturists without radically changing the social
pattern of our society. Efforts to evolve a system by which ownership of
land can be identified so that the credit requirements of the farmers
can be met easily by the financial institutions are being
continued both by the District Councils and the Government. It is
expected that effective steps will be taken to solve this problem and
institutional credit will flow in ensuring sustained agricultural
growth.

Weights and Measures

Weights and Measures
Department has a statutory function to standardize and enforce all
weights and measures in the State according to the Metric System. The
task is by no means easy because it involves complete change of age-old
units of measurements and weights. The programmes of the Department
will be supported by adequate publicity so that adoption and use of
metric system becomes a common practice in the State.

Health

On the 21st January, 1972 , the following
medical institutions were taken over from the Government of Assam

1. Pasteur Institute, Shillong ;

2. Ganesh Das Hospital, Shillong ;

3. Shillong Civil Hospital Shillong ;

5. Laban Dispensary ; and

6. Contributory Health Scheme Centres.

The State Public
Health Laboratory will be transferred to Meghalaya after Assam
Government starts its own, though we will continue to contribute a part
of the expenditure and use the services of this laboratory as
before. Even before the creation of the full-fledged State of
Meghalaya early this year, the there were 67 dispensaries and 24
block dispensaries in the State besides the hospitals in Jowai and Tura.
It is proposed to construct a part of the proposed new hospital at
Tura and expand the existing Jowai Civil Hospital as soon as possible.
It is also proposed to establish Health Education Bureaus. Five
Nutritional Therapy Centres for the benefit of the under-nourished
children have also been functioning in the State.

The Government have
already sanctioned additional incentives to doctors serving in rural
areas so that more doctors are attracted and the problem of shortage of
doctors in rural areas is solved early.

Out of the annual plan
outlay of Rs.25 lakhs during 1971-72 only an amount of Rs.15.25 lakhs
could be spent partly due to technical reasons and partly due to
the strain on the personnel on account of relief operations. During
the current year, a sum of Rs.30.00 lakhs has been provided for in
the Plan, which includes programmes calculated to make up the backlog in
expansion and establishment of hospitals, training of Para-medical
personnel and development of existing dispensaries.

Besides, the
normal programmes, the Health Department has also been implementing
some National schemes like Malaria Eradication Programme, Small-pox
Eradication Programme, Filaria control Programme and programmes to
control diseases like trachoma, leprosy and cholera. Family Planning is
one of the major centrally sponsored schemes being executed by the
Medical and Health Department.

Education

Before initiating the steps for improvement of education in Meghalaya,
the State Government was very keen to decide on the type of education
that we should impart to our children. With this end in view and also to
determine whether the education being given now is suitable for our
State, a commission was constituted which is currently studying the
problem and will make its recommendations available within a short time.
The Government have also taken up projects for teaching science in
selected middle schools and have set up a State Sports council for
improvement in the field of sports. The Government is also
considering the appointment of a Text Book Committee. Our secondary
education and higher education is still under the control of the Gauhati
University and the Government are considering the
evolving of a suitable arrangement in this regard. A full time
Director of Public Instruction has been has been appointed to streamline
the educational administration. The Government is also considering the
proposal to create 20 scholarships for students of Meghalaya reading in
Sainik Schools.

As the hon'ble members
know, our State is very far behind other States in the field of
technical education. In spite of the restrictive policy currently
followed by the Government of India due to unemployment of engineers and
technicians, we have sent a proposal for introduction of electrical and
mechanical engineering course in the Shillong Polytechnic to meet
the requirements of the situation in Meghalaya. It is hoped that a
Girls' Polytechnic will also become a reality during the 4th Plan and
will include courses like food technology, pharmacy and tele-communications.
Steps are also being taken to start another polytechnic school for boys.
Provisions have been made for the programme of Scholarships, text
books and establishment of a Directorate of Technical Education.
Government have also constituted the State Social Welfare Board of
Meghalaya.

Labour

Labour Department
which deals mainly with industrial harmony between employers and
employees, training in craftsmanship and certain regulatory and
inspection functions with regard to industry as a whole, has, as a
subject, come over to Meghalaya on 21st January, 1972. The work for
creation of Directorates and Inspectorates has been taken up. The
institutions so far under the control of this Department are Employment
Exchanges at Shillong, Jowai and Tura and the Industrial Training
Institute at Tura. The Industrial Training Institute, Shillong at
present functioning at Guwahati will be shifted to Shillong as soon as
possible.

District Councils

The Government
have continued to assist the District councils financially, and
especially in their schemes for rural water supply, rural
communications and construction of buildings. There is a provision of
Rs.25 lakhs during the year 1972-73 for the above schemes.

Comments of the District Council on the
District Budget

The estimate of receipt and
expenditure for 1972-73 pertaining to the District were first placed
before the respective District Councils with a view to eliciting their
comments. The comments of the members of the District Councils which
were received have been considered by the Government. I
would like to make it clear that the State would like to make it clear
that the State Government attach due importance to the views
expressed by the members of the District Councils. Efforts are made to
make adequate provisions depending upon the requirements and
availability of funds. The State Government are working
under financial limitation and constraints both on the Plan as
well as on Non-Plan side. The allocations have to be made within the
limitation of overall resources position of the State. The provisions
for Plan Schemes are fixed in consultation with the Planning
Commission. In view of these circumstances Honourable Members would
appreciate that it may not be possible to act upon all the
suggestions of the members of the District Councils, though utmost
effort is made to accommodate them as far as possible.

Municipal Administration

The Municipal
Administration Department which had been looking after the Garo Hills
Town Committee only till 21st January, 1972, has also started looking
after the Shillong Municipality after the creation of the full State of
Meghalaya. An amount of Rs.15,000 has been provided as grant to these
local bodies this year and an amount of Rs.1,40,000 has been
proposed as loan to the Shillong Municipality during the year 1972-73 to
improve the Shillong Town Water Supply.

Public Works

On account of
geographical conditions in Meghalaya, roads are vital for developing the
economy of the State. We now have about 3450 Km. of roads net-work
in the State. The completion of the double line Someswawri Bridge at
Baghmara within record time was a commendable achievement of the Public
Works Department. The completion of the concrete bridge near Balat has
also been very helpful in movement of supplies and for National Defence.
Work on Maheshkhola Bridge is also in progress and the constructing of
the Chibinang Bridge in Garo Hills will also be taken up shortly.

Public Health

The Public Health Department
completed 8 water supply schemes during the last year benefiting a
population of over 11,000 in the rural areas. 20 more water supply
schemes are also in progress and 10 new schemes will be taken up during
the year 1972-73.

The Greater Shillong
Waster Supply Scheme costing Rs.336.70 lakhs in the first phase has been
sent to the Government of India for technical approval and arrangement
of funds.

Urban Development

During the current year it
is proposed to take up the formulation and implementation of certain
schemes for Urban Development. The Directorate of Town and Country
Planning and Housing has already been startled and housing loans under
the Low Income Group Housing Scheme will be given this year to the
extent funds are available.

Supply

The supply machinery in the
State had undergone great stress due to the problem of refugees during
last year. But the position of supplies and the prices were reasonably
kept under control, though few cases of temporary and local price rise
were noticed. The problem of feeding the refugees was a colossal one,
but the Government met this problem successfully in spite of the
ill-equipped supply machinery. The Government have taken up a transport
subsidy scheme financed by the Government of India to enable the people
in the border areas to purchase essential food-stuff at prices
prevailing at the district headquarters. We are getting regular
allotment of rice, wheat and sugar from the Government of India and the
supply position in the State is generally satisfactory. There is an
acute scarcity of cement, C.I. Sheets, Iron and Steel, etc., in the
State and the question of increasing the supply of these items has been
taken up with the Government of India.

Tourism

During the current year, it
is proposed to take up schemes for development of places of tourist
interest, and conducted tours for tourists.

Transport

Although the Assam
State Road Transport Corporation has been re-named the Assam and
Meghalaya States Road Transport corporation after 21st January, 1972, a
final decision regarding the continuance of a joint Corporation is
expected to be taken within a few months. The State Transport Authority
has already been constituted and a scheme to run departmental bus
services, on some interior routes is already under implementation.

Industries

In order to assess the
industrial potential of the Sate, a techno-economic survey was conducted
last year through the National Industrial Development corporation. Based
on the report of the Corporation, negotiations are underway with
consultancy firms for preparation of feasibility studies of possible
industries in the State. The Meghalaya Industrial Development
Corporation has been set up and we have already entered into
negotiations for establishing a Cinnamon Oil Distilling Plant. The Assam
Cement Limited at Cherrapunjee has also come over to Meghalaya and steps
have been taken to improve the functioning of the Company. Schemes
have also been taken up to develop village and small scale
industries.

Sericulture and Weaving

As Meghalaya is ideally
suited for development of sericulture and weaving, 10 schemes were taken
up during the year 1971-72 at a total cost of Rs.6 lakhs. Eri
concentration centres and collective mulberry gardens have already been
established and muga and wild silk worm rearing have
also been introduced on an experimental basis. It is proposed
during the current year to expand the grants-in-kind facilities in Garo
Hills District as the weaving industry is practically confined to that
district. The Annual Plan outlay for sericulture and district. The
annual Plan outlay for sericulture and weaving including handloom
co-operatives is of the order of Rs. 9 lakhs for the current year.

Power and Electricity

The achievements in the
power sector so far have been the construction of a 132 KM. line from
Shillong to Cherrapunjee, Construction of distribution
sub-stations and extension of 33 Km.11 kv. and other lines for rural
electrification. Out of a total of 40 villages proposed to be
electrified during the last year, only 6 villages could be actually
electrified. The short fall can be ascribed to difficulties in
transportation and booking of materials to Assam and Meghalaya
from outside the State. An outlay of Rs.38 lakhs has been proposed for
the year 1972-73 for the spillover works as well as the new rural
electrification programme.

Mining and Geology.

This work was earlier
entrusted to the Government of Assam but we have recently established
our own Directorate of Mineral Resources. A number of mineral
occurrences have been located in the State.

Information and Public Relation

The Government have
taken steps to streamline this Department and an outlay of Rs.7.56 lakhs
has been proposed for the purpose. The schemes to be taken up this
year include publication of bulletins at the District level, purchase of
vehicles, exhibitions, rural broadcasting, publicity through
cultural media, films and other audio-visual publicity and printing of
publicity literature for distribution in the villages.

Political

It may be worthwhile
mentioning at the outset that the Police administration in Meghalaya
has been separated from that of Assam recently and we have also
acquired an Armed Police Battalion of our own. The possibility of
smuggling of arms and ammunition from across the border poses a
serious danger and the State Government has proposed to establish a
number of check posts on the border for the purpose. The law and order
situation has generally been normal except for influx of a number of
Pnars from Mikir Hills District into Jaintia Hills District due to
repressive treatment meted out to them. The Government has taken
up the matter with the Government of Assam so that conditions can be
created for early return of these Pnar villagers to their homes.
The Government also proposes to liberalise border trade across the
border with Bangladesh and to establish border hats for the
purpose. We also take this opportunity to appreciate the efforts of the
Government of India and the Government of Bangladesh directed to
establish better trade relations between the two countries.

Services

Members are aware that
under the provisions of the North-Eastern Areas (Re-organisations) Act.,
1971, staff (other than members of the All-India Services) serving in
connection with the affairs of the existing State of Meghalaya including
those already serving under the Government of the then Autonomous State
of Meghalaya, are to be finally allocated between the Government of the
State of Assam and the Government of the State of Meghalaya as may
be determined by an agreement between the two Governments. Pending final
agreement for allocation of staff belonging to different State
Services as between Assam and Meghalaya, an understanding has been
reached with the Government, of Assam that the staff now serving in
connection with the affairs of Meghalaya, including those who may later
be required to serve, shall be treated as on deputation but
without any deputation allowance. The question of constitution of
various services in the Sate of Meghalaya consequent on the allocation
of the staff as between Assam and Meghalaya, is now under the
consideration of the Government.

Under Section 70 of
the North Eastern Areas (Re-organisation) Act,1971, the Public Service
Commission for the existing State of Assam as defined in the
aforesaid Act ceased to have jurisdiction over the State of Meghalaya in
matters of recruitment to posts and service in connection with the
affairs of Meghalaya, and consequently, the Assam Public Service
Commission (Limitation of Functions) Regulations,1951, as amended ceased
to be applicable in respect of any recruitment matters provided there
under concerning posts and service under the
Government of Meghalaya. The State Government have decided to set up a
Public Service Commission for Meghalaya.

Elections

The First General
Election to the Meghalaya Legislative Assembly and the Bye-Election to
the Lok Sabha from Tura Parliamentary constituency were held
simultaneously on the 9th March 1972. Elections to the District Councils
of Garo Hills and Khasi Hills were also conducted during 1972. Polling
in the State was smooth and the response from the electorate was good.

Census

The major work on the
decennial Census has almost been completed and some of the officers have
been awarded medals for meritorious work.

Relief to Government Employees.

Government are keen to meet
the needs of their employees as far as possible within the
financial constraints and limited resources. The Scheme for House Rent
Allowance adopted in 1970-71 in view of prevailing acute scarcity of
housing accommodation will be continued during the current year also.
The State Government have also decided to grant interim relief to their
employees on the scale recommended by the Pay Commission set up by the
Assam Government.

Budget for 1972-73

Mr, Speaker, Sir, now I have
the privilege to present the first budget of the new State of Meghalaya.
The Budget estimates for 1972-73 now presented include, the
provisions made in the vote-on-Account budget passed by this august
House in March last. Some modifications in the estimates for the whole
year under certain Heads have, however, been made in the light of
further scrutiny as well as new requirements.

Provision of
Rs.50 lakhs has also been made for contribution to the Contingency Fund

The salient
features of the budget estimates for 1972-73 are as follows :-

RECEIPTS

Items

Amount in lakhs of rupees

A Receipts in the Consolidated Fun

(i) Statutory grant under Finance Commission Award.

2,75.00

(ii) State's share of Central taxes and duties under the
finance commission Award.

(iv) Grants from Ministry of Transport for construction
and maintenance of border roads, etc.

1,26.10

(v) Central assistance for Plan expenditure

(a) Grants
..........................

6,49.80

(b)
Loans...........................

72.20

(vi) Central assistance for Centrally Sponsored Schemes.

1,69.70

(vii) States receipts ....................

1,56.23

(viii) Market loan

52.00

(ix) Loan from Life Insurance Corporation of India

30.00

(x) Temporary Ways and Means Advances from Reserve
Bank of India

1,10.00

Total - A

19,87.81

B. Surplus in the Public Account

10.00

C. Opening cash balance................................

(-)55.54

Total - Resources (A+B+C)

19,42.27

EXPENDITURE

( In lakhs of rupees)

Item

Plan

Non-Plan

Total

A. Expenditure.

1. Gross revenue expenditure

6,34.11

13,47.21

19,81.32

Deduct Recoveries

5.00

1,07.99

1,12.99

Net revenue

6,29.11

12,39.22

18,68.33

2.. Gross capital expenditure

3,54.86

5,16.54

8,71.40

Deduct Recoveries

9.27

55,77

63.04

Net Capital expenditure

3,45.59

4,60.77

8,06.36

Total - Gross

9,88,97

18,63.75

28,52.72

Net

9,74.70

16,99.99

26,74.69

B. Closing Cash Balance

....

.....

(-)7,32.42

Total - (A+B)

9,74.70

16,99.99

19,42.27

Thus the budget
Estimates for 1972-73 will close with an over-all deficit of Rs.(-)732.42
lakhs. The deficit gap of Rs.(-)200.86 lakhs in the estimates for
1971-72 now comes to Rs.(-)55.54 lakhs under the revised estimates.

Deficit in the Budget.

According to the financial
estimates included in the budget for 1972-73, the year will end up with
a deficit of Rs.732.42 lakhs. I am extremely unhappy to present before
this august House a Budget with an over-all deficit of this magnitude.
This is due to inescapable reasons which are beyond the
control of the State Government.

The aforesaid
deficit includes the carry-over deficit of Rs.55.54 lakhs from the end
of the year 1971-72. As Honourable Members aware, with effect from 21st
January, 1972, the Police Administration has come over to the Government
of Meghalaya. We have also taken one Armed Police Battalion from Assam
for discharging our duties relating to maintenance of law and order.
Some of the important institutions such as Jail, Civil Hospital, Ganesh
Das Women and Children Hospital, Reid Chest Hospital, etc., have
also been handed over to us. The Government of Meghalaya will have to
incur expenditure for the Roads and disburse grants-in-aid, etc., to the
educational Institutions falling within the Shillong Municipal and
Cantonment Area. All these factors have imposed considerable financial
responsibility on us.

A provision has been made in
the Budget for repayment of Rs.4.13 crores towards principal and
interest to the Government of India. While a part of this relates to the
repayment of the amounts advanced by the Government of India after the
creation of Meghalaya as an Autonomous State, large part relates to the
repayment liability as provisionally determined by the Accountant
General on Account of the debt liability of the composite State of
Assam. In view of the financial position of the State, we would approach
the Government of India for writing off this liability of for giving us
relief in any other suitable manner considered feasible in these
circumstances. As the Honourable Members are perhaps aware, the State of
Meghalaya came into being after the last Finance Commission Award was
put into implementation. The requirement of the State for running normal
administration are yet to be assessed. The State Government propose to
place their case before the next Finance Commission which is being
appointed very shortly. Pending the examination of the case of
the State Government by the Finance Commission, the State Government
will move the Government of India for increasing financial assistance
for meeting the increased requirement of funds due to the financial
liabilities devolving upon in terms of the North-Eastern Areas (Re-organisations)
Act, 1971. We look forward to a sympathetic equitable and just
treatment from the Government of India in this regard considering
the peculiar conditions of the State and also in view of the fact that
our non-Plan revenue gap has still to be assessed.

Honourable
Members will agree with me that while we shall press for our rightful
share from the Government of India yet at the same time we shall strive
to become self-reliant and to stand on our own legs. With this
object in view, we have to explore avenues of additional resources
mobilisation. The need for accelerated development of Meghalaya
and for running its administration smoothly has placed upon us a
responsibility which calls for maximum efforts and sacrifices. I appeal
to all the Honourable Members and to the people to co-operate with us in
achieving this objective.

I have made an
earnest attempt to present a Budget which reflects and provides for
meeting the requirements of our new State of Meghalaya within the
framework of financial constraints and limitation of resources. The
wholehearted co-operation of the entire people of the State is necessary
for ensuring the success of the programmes which we propose to undertake
and which have been briefly outlined in the budget. This also requires
the co-operation and the best efforts of the entire administrative
machinery. With an earnest appeal to the Honourable Members and to all
sections of the people to contribute their mite towards the achievement
of our common goal, I present the Budget for 1972-73 for consideration
and acceptance of the House.